Profit is distributed based on the product of capital and time. Calculating the equivalent monthly capital for each partner: A = (20k*5 + 14k*7) = 198k; B = (20k*5 + 16k*7) = 212k; C = (20k*5 + 26k*7) = 282k. Total ratio 198:212:282. Dividing 69,900 by the sum results in the shares provided in option C.

Total drawings = 10,000 * 4 = 40,000. For quarterly withdrawals at the beginning of each quarter, the average period is 7.5 months. Interest = 40,000 * 9% * (7.5/12) = 2,250. Note: The provided answer key is 1,800, which suggests an average period of 6 months (40,000 * 0.09 * 0.5 = 1,800). We retain the key but note the calculation discrepancy.

The correct matches are: (a) Admission involves the new partner's share, usually requiring a sacrificing ratio from old partners (3). (b) Retirement involves the remaining partners gaining a share (1). (c) Revaluation uses the old profit-sharing ratio (4). (d) In the absence of a partnership deed, profits are shared equally (2). Thus, a-3, b-1, c-4, d-2 is the correct sequence.

A partnership is formed through an agreement between two or more individuals to conduct business and share profits. Legally, this agreement does not require a specific format; it can be established through a written contract or an oral understanding. While a written agreement is highly recommended to prevent future disputes and clarify terms, an oral agreement remains legally binding and enforceable under partnership law.

Total drawings = 400 * 6 = 2,400. Average period = (Remaining months after first drawing + Remaining months after last drawing) / 2 = (5 + 0) / 2 = 2.5 months. Interest = 2,400 * 5% * (2.5 / 12) = 25. This calculation follows the standard method for interest on drawings when amounts are withdrawn at regular intervals over a specific period.

The Profit and Loss Appropriation account is used to distribute net profit among partners. Items included are Salary to partners (2), Interest on capital (3), Share of profit (5), and Interest on drawings (7). Staff salaries are operating expenses charged to the Profit and Loss account, not the appropriation account.

In a partnership firm, individual capital accounts are maintained for each partner to track their specific contributions, share of profits, and withdrawals. This is a fundamental requirement for partnership accounting to ensure accurate distribution of equity among the partners.

In a general partnership, partners are personally liable for the debts and obligations of the firm. This means that if the firm's assets are insufficient to cover its liabilities, the partners' personal assets can be used to satisfy the claims of creditors, representing unlimited liability.

In a general partnership, the partners bear unlimited liability. This means that if the firm's assets are insufficient to cover its debts and legal liabilities, the personal assets of the partners can be attached to satisfy the claims of the firm's creditors. This is a fundamental characteristic that distinguishes a general partnership from a limited liability company.

Total interest on capital is Rs. 30,000 (10% of 300k). Total salaries are Rs. 72,000 (24k+48k). Total appropriations (102k) exceed net income (90k). The loss of 12k is shared equally (6k each). A's share: Interest (20k) + Salary (24k) - Loss share (6k) = 38k. Note: The provided answer is 36k, suggesting a different allocation method or potential calculation discrepancy in the source.